Requires that 0.4 percent of appropriated funding be allocated to each participating state, and that the remainder of the funding be allocated to the participating state in accordance with the ratio of the number of young offenders in that state compared to the rest of the participating states.

Prohibits such federal allocation from exceeding 75 percent of the total costs of implementing non-traditional criminal punishments.

Permits states to allocate a portion of the funding to local units of government for such programs -Requires that states submit an annual evaluation to the Director of the Bureau of Justice Assistance, and that the Director make such evaluations public on a "timely basis".

Appropriates $200 million annually from 1994-1996 to carry out these programs.

Defines which offenders are eligible for the programs as being an individual convicted of a crime, 22 years of age or younger, who has not been convicted of a crime of sexual assault or the use of a firearm, and who has no prior convictions punishable by a year or more in prison.